Simpson Thacher is representing Blackstone in connection with its $14.6 billion recapitalization of BioMed Realty. Blackstone Real Estate Partners VIII and co-investors have agreed to sell BioMed Realty for $14.6 billion to a group led by existing BioMed investors. This is part of a new long-term perpetual capital, core+ return strategy managed by Blackstone. In connection with the recapitalization, existing BioMed investors were offered the option to exit for cash or reinvest their proceeds from the sale. The investment will generate $6.5 billion of cumulative profits for BREP VIII and BioMed co-investors.
To confirm this transaction represents the best available outcome for the existing investors, Blackstone is commencing a “go-shop” process on behalf of BioMed’s current investors, which will be led by Morgan Stanley who will solicit superior proposals.
The Firm represented Blackstone when it acquired BioMed in an $8 billion take private transaction in 2016.
BioMed is the largest private owner of life science office buildings in the United States with an 11.3 million square foot portfolio concentrated in the leading innovation markets including Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge U.K.
The Simpson Thacher team includes Sas Mehrara, Krista Miniutti, Sarah Green, Carla Elliott, Robert Vogel, Wendell Ramsey, Taylor Hatch and Avi Kaye (Real Estate); Brian Stadler and Shaun Levor (M&A); Peter Vassilev, Parker Kelsey, Michael Wolitzer, Jonathan Karen, Charles Xu, Audra Cohen, Drew Harmon, John Tracy, Nathalie Herrand, Peter Thomas, Jason Park, Julia Kerr, Demetrius Baefsky, Nicole Fu, Bethany Wong, Elliott Kieffer and Alisha Tupchong (Funds); Brian Gluck and Arman Naraghi-Pour (Banking and Credit); Nancy Mehlman, Jodi Schneider and Zachary Fialkow (Tax); and Andrew Blau, Joo Hyan Lee, and Caitlin Fitzgerald (Executive Compensation).